ABU DHABI: Abu Dhabi investment fund Mubadala is open to raising its stake in General Electric Co (GE) and expects to close a joint infrastructure fund with the US firm worth $500 million in 2011, its chief operating officer said.
The Abu Dhabi investment fund is the 14th largest shareholder in GE with 76.92 million shares, or 0.2 percent of the total.
"It is a solid investment and if market conditions allow Mubadala could raise its stake in GE," Waleed Al-Muhairy told reporters.
The infrastructure fund between Mubadala, GE and Credit Suisse invested $300 million in its first closing a few months ago, and expects to increase it to $500 million in 2011, he said.
GE plans to sell Islamic bonds or sukuk soon, after it raised $500 million in a sukuk last year, Nabil Habayeb, president & CEO, GE Middle East & Africa, told reporters.
He declined to give a size or timeframe.
GE unit GE Capital raised $500 million in a five-year Islamic bond sale in November.
$2 billion financing commitments
Meanwhile, Mubadala GE Capital committed $2 billion in financing 45 deals in its first year in the Middle East and Africa, tapping into growing demand for finance in the region, Ronald Herman chief executive of the joint venture said on Monday.
The 50:50 financing joint venture between GE and Mubadala began commercial operations in 2009 with $8 billion of equity.
"As of Dec. 13, we reached $2 billion in commitments. We see significant future demand of commercial financing opportunities in the United Arab Emirates and across the Gulf and wider Middle East and Africa," Herman told reporters.
Over 45 transactions were closed across 14 different industries, he said, declining to give further details.
Mubadala GE Capital offers commercial lending, leasing and equity finance across key sectors such as power and water, infrastructure, energy, healthcare, aviation and industry.
Recent deals include acquisition finance for an oil and gas company in the United Arab Emirates and a corporate finance deal for a company in Jordan, he said.
The firm also plans to close in two weeks an aircraft financing deal for an Abu Dhabi-based company, he said, declining to give details.
It will make a secondary acquisition of minority equity interest in a Gulf power asset towards the end of the week, he added.
